![Dallas Office Building Sells for $8M in Foreclosure Auction](https://static.therealdeal.com/wp-content/uploads/2024/02/Dallas-Office-Building-Sells-for-8M-in-Foreclosure-Auction-f-150x106.jpg)
Wolfe sued for default on loan connected to Fort Worth office building
Lawsuit claims syndicator Kenny Wolfe defaulted on $7.5 bridge loan
![Lawsuit Claims Star-Telegram Building Owner Defaulted on Loan](https://static.therealdeal.com/wp-content/uploads/2024/02/Lawsuit-Claims-Star-Telegram-Building-Owner-Defaulted-on-Loan-m-1400x875.jpg)
Syndicator Kenny Wolfe is in legal hot water with another downtown highrise.
The CEO of Plano-based Wolfe Investments is being sued by New York-based lender TBG Funding, accused of defaulting on a $7.5 million bridge loan. The September 2023 suit also names 307 Star GP LLC and 307 Star Highrise LLC, which are likely connected to the downtown Fort Worth’s Star-Telegram building at 307 West Seventh Street.
Last May, Wolfe partnered with Dallas-based syndicator Bluelofts to purchase the 19-story Star-Telegram building and the adjoining 16-story Oil & Gas building in downtown Fort Worth. The developers are planning multifamily conversions for both properties, with a total of 268 units.
Bluelofts is marketing the Star-Telegram building as “The Star on 7th,” and aiming to pull in small investors on the deal for a minimum contribution of $25,000.
Wolfe is a protegee of multifamily syndication guru Brad Sumrok. The self-described “Apartment King” claims to teach regular people how to “retire in five years by investing in apartments.” In a newsletter, Sumrok describes Wolfe and his wife Teresa as “some of his successful students.”
Sumrok was slapped with a fraud suit last month when a former student accused him of misrepresenting the value of his mentorship program.
The September lawsuit against Wolfe is the first of two accusing him of defaulting on short-term loans.
Another short term lender, Priya Capital CEO Niraj Shah, accused the Wolfes of defaulting on a $6.15 million loan in a December lawsuit. Shah provided the loan for the purchase of 211 North Ervay Street. In the suit, he claims the Wolfes instead used the money to open a line of credit to purchase the Oil & Gas Building.
Now Wolfe is starting to face foreclosures.
Last week, a downtown Dallas building Wolfe bought last year sold for $42 per square foot at a recent foreclosure auction.
An entity tied to Wolfe’s lender scooped up the blue-paneled tower at 211 North Ervay Street for $8 million, according to data from Roddy’s Foreclosure Listing Service. Thistle Creek Partners, a division of Thistle Creek Capital, provided the $13.2 million loan on the property.
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![Brad Sumrok Hit With Fraud Allegations](https://static.therealdeal.com/wp-content/uploads/2024/01/Brad-Sumrok-Hit-With-Fraud-Allegations-f-150x106.jpg)
![Bluelofts co-founders Ike Bams and John Williams, with the Star-Telegram building at 307 West 7th Street in downtown Fort Worth](https://static.therealdeal.com/wp-content/uploads/2023/05/Bluelofts-Wolfe-Snag-Fort-Worths-Star-Telegram-Building_FT-Thumbnail.jpg)